Hey there, I'm Justin Floyd, your go-to guide for all things related to Nashville real estate. A year ago, the Federal Reserve jacked up interest rates with the goal of slowing down the runaway housing market. So, did it work here in Nashville? That's what we're here to find out today.
A Snapshot of Nashville's Housing Market
First off, let's talk numbers. A year out, and the median sales price for a single-family home in Nashville is $560,000, up just 1.8% from $550,000 last year. If you ask me, that's not much of a bump, which means that home prices are more or less holding steady.
The Sales Volume and Days on Market
Here's where things get interesting. The total number of single-family home sales has dropped ever so slightly—by 1.9%—compared to last year. Now, regarding the time houses are spending on the market: that’s where we see some noticeable change. Last year, homes were getting scooped up in just 12 days, whereas this year it's taking about 21 days.
Inventory: The Big Number
We can't talk about the housing market without mentioning inventory, or lack thereof. New listings have dropped by a staggering 20%. People seem wary of leaving their comfy 3% interest rate homes for new abodes with rates as high as 7%. So, if you're seeing fewer options out there, this is why.
New Construction: Filling the Gap
With fewer homeowners willing to sell, new construction has filled in the void. As it stands, one in every three listings in Nashville is a new construction. It's not because builders are overzealous; it's because current homeowners just don't want to sell.
The Rise of the Condo Market
Something else I've noticed is the growing interest in condos, and for a good reason. With mortgage rates up and home prices staying more or less stable, the monthly payment you’re looking at is, well, not so comfortable. The median sales price for a condo right now is $392,000, up 7% from last year. So if you're considering options, condos might be worth a look.
Future Projections: What's Ahead?
I can't help but think we’re in the calm before the storm. If interest rates drop to around 5%, we’re likely to see a flurry of activity in the housing market. It's like there's this pent-up demand just waiting for the right moment to unleash.
Wrapping it Up
So, did the Fed's interest rate hike work? Well, if the goal was to keep home prices from skyrocketing, then yes, it worked to some extent. But the overall picture is more complex, with lower inventory and people hesitating to make moves.
If you've got any questions, feel free to drop them below or shoot me an email at justin@justinfloydhomes.com. And if you find my updates helpful, hit that subscribe button on YoutTube. My goal is to reach 250 followers by year-end, and I’d love your support!